Qualified retirement plans protect assets in malpractice suits

Understand whether your retirement assets are at risk if you're sued for malpractice.

A: Funds held in a qualified plan are protected from malpractice creditors. A qualified plan would be a 401(k) plan, profit sharing, cash balance plan, or similar plan. Individual retirement accounts, however, have limited protection in the case of bankruptcy. In short, the best way to protect the assets in your retirement plan is to keep them in a qualified plan. But be aware that some states don't protect qualified plans if the sole participant is the owner of the business.